Open Book Accounting supports the principles of Best Value.
Each partner is committed to share general business information, including cost information. This encourages cost savings and Best Value solutions over long term contracts.
The challenges of Open Book Accounting are to:
- Encourage the acceptance to change by all parties
- Reduce risk and introduce the concept of "pain/gain"
- Establish the scope of works to enable accurate budget setting
- Establish robust accounting procedures for audit purposes
- Define disallowed costs
- Continual review of processes